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Please help with this financial accounting question. Need ASAP. Fresh Air Corp. (FAC) purchases a machine with the following information: purchase price: 50,000 estimated salvage
Please help with this financial accounting question. Need ASAP.
Fresh Air Corp. ("FAC") purchases a machine with the following information: purchase price: 50,000 estimated salvage value: 5,000 estimated useful life: 5 years or 10,000 hours of use Assume FAC uses the units of activity method. At the end of Year 1, what is the credit balance in Accumulated Depreciation if the machine was used for 1,800 hours? New question: Assume FAC uses the double declining balance method for the entire time instead. For Year 2, what is depreciation expense? (Round to nearest dollar) New question: Assume FAC uses the straight line method for the entire time instead. At the end of Year 3, what is the machine's net book value? Assume on January 1 of Year 4, FAC sells the used machine for 25,000. FAC has been using straight-line the entire time The journal entry for the sale will include: gain on sale of 7,000 b gain on sale of 2,000 C loss on sale of 2,000 d loss on sale of 5,000Step by Step Solution
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